6 Apr 2015
USD/JPY moving in a sideways channel – ADM
FXStreet (Barcelona) - Eddie Tofpik of ADMISI, shares the technical outlook for USD/JPY, noting that the pair seems to be moving in a 118.79-121.84 sideways channel.
Key Quotes
“Last month I placed a question mark against the bullet point above as the rally was still there ‘…but it has relegated to the background…’. This month has proved just that because on the Monthly Chart we have an Indecisive Spinning Top Pattern which just about sums up the whole action – nice rally at the start which has possibly set the ground work for a Double Top formation later on and then a decline post mid-month!”
“Yet despite all this we have still three out of four MA’s pointing upwards though in varying degrees of ‘upwardness’ – hence the bullet point stays the same! Looking at the action, it seems we have two areas, one a support and one a resistance which have bracketed the market.”
“Support is from the Dec 2014 50% Fib at 118.79 – two consecutive closes underneath and we definitely have to reassess the situation into possibly neutral. Resistance is the Dec 2014 and also recent high area 121.84 – 122.02 with a similar caveat but with two consecutive closes over – that ought to affirm any rally!”
“Perhaps that is what we are heading for altogether – a sideways Channel – but we need more action to confirm.”
“In the meantime support is obviously at 118.79 then, 118.30, 118.03 – 117.92, 116.99, 116.65 & 115.93.”
“Resistance is at 119.11 (dynamic) 119.56, 119.86, 120.33, 120.75, 121.20, 121.67 & then 121.84 – 122.02!”
Key Quotes
“Last month I placed a question mark against the bullet point above as the rally was still there ‘…but it has relegated to the background…’. This month has proved just that because on the Monthly Chart we have an Indecisive Spinning Top Pattern which just about sums up the whole action – nice rally at the start which has possibly set the ground work for a Double Top formation later on and then a decline post mid-month!”
“Yet despite all this we have still three out of four MA’s pointing upwards though in varying degrees of ‘upwardness’ – hence the bullet point stays the same! Looking at the action, it seems we have two areas, one a support and one a resistance which have bracketed the market.”
“Support is from the Dec 2014 50% Fib at 118.79 – two consecutive closes underneath and we definitely have to reassess the situation into possibly neutral. Resistance is the Dec 2014 and also recent high area 121.84 – 122.02 with a similar caveat but with two consecutive closes over – that ought to affirm any rally!”
“Perhaps that is what we are heading for altogether – a sideways Channel – but we need more action to confirm.”
“In the meantime support is obviously at 118.79 then, 118.30, 118.03 – 117.92, 116.99, 116.65 & 115.93.”
“Resistance is at 119.11 (dynamic) 119.56, 119.86, 120.33, 120.75, 121.20, 121.67 & then 121.84 – 122.02!”